Haris Ashley
Homeowners insurance is not a legal requirement in the U.S., unlike car insurance, but it provides vital financial support in the event of damage to your home. The average cost of homeowners insurance in the U.S. is $2,151 per year, but this varies depending on the state and the company providing the insurance. For example, the average cost of homeowners insurance in California is approximately $1,383 per year, while in Georgia, it is $2,217 per year. The cost of insurance also depends on the value of your home and its location. For example, if you live in an area prone to natural disasters, your insurance rates may be higher. Other factors that can affect the cost of homeowners insurance include your credit history and the features of your home. When choosing a homeowners insurance policy, it is important to shop around and compare quotes from different companies to find the best rate and coverage for your needs. Some of the cheapest homeowners insurance companies in the U.S. include USAA, Auto-Owners, Amica, and State Farm.
| Characteristics | Values |
|---|---|
| Cheapest large home insurance companies | Travelers, Progressive, USAA |
| Cheapest for homeowners with poor credit | Travelers, Progressive |
| Cheapest for homeowners with a claims history | Progressive, Auto-Owners |
| Cheapest average home insurance rates in the U.S. | USAA, Auto-Owners |
| Cheapest in Georgia | Auto-Owners, Progressive |
| Cheapest in California | Mercury Insurance |
| Cheapest in the UK | Direct Line, NFU Mutual |
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What You'll Learn
Cheapest large companies
The cheapest large companies for homeowners insurance vary depending on the age of the home, the location, and the coverage amount. Here is a list of some of the cheapest large companies for homeowners insurance:
Travelers
According to NerdWallet's analysis, Travelers has the cheapest annual home insurance on average at $2,055. It also offers decent discounts, a strong online experience, and user-friendly features on its website and app. You can manage your policy online, including getting a quote, filing claims, and making payments.
Progressive
Progressive is one of the cheapest large home insurance companies, especially for new homes. They offer the most affordable coverage for three out of four different dwelling coverage amounts: $200,000, $350,000, and $500,000. They also have competitive rates for homeowners with poor credit or a claims history.
USAA
USAA is widely considered one of the best insurance companies for customer satisfaction and service. It is the fourth-largest home insurer in the US by market share and is available in all 50 states. However, coverage is limited to members of the military community and their families. USAA offers numerous discounts and coverage options specific to military members, such as coverage for lost or stolen uniforms.
Amica
Amica has been ranked as the cheapest homeowners insurance provider by US News and is the second-best option for those who don't qualify for USAA policies. They offer competitive rates and extensive coverage options.
State Farm
State Farm policyholders save over $500 on average each year for $350,000 in dwelling coverage compared to top competitors. They also have one of the largest bundling discounts, with customers saving an average of 23% when bundling home and auto policies.
It is important to note that the cheapest company for your specific needs may vary, and it is recommended to obtain quotes from multiple insurers to find the best policy that fits your budget and coverage requirements.
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Discounts for eco-friendly homes
Home insurance is not a legal requirement in the U.S., but it provides vital financial support in the event of property damage. Homeownership expenses like mortgage payments, property taxes, utility bills, and home insurance can be quite expensive. Therefore, it is important to find ways to reduce these costs. One way to do this is by taking advantage of discounts offered by insurance companies. For instance, several national insurance providers offer lower rates if you have an eco-friendly house.
An eco-friendly home incorporates materials and features that help lower your family’s carbon footprint and limit the home’s impact on the environment. This is usually achieved by lowering electricity usage, conserving water, and using locally-sourced materials to reduce carbon emissions during transportation. Energy-efficient appliances can also lower energy bills and decrease the chances of filing an insurance claim. For example, smart home systems can detect and automatically shut off leaks, preventing water damage.
Some insurance companies offer discounts for eco-friendly homes. For instance, Kin Insurance offers a 5% discount to California residents with LEED-certified homes. Similarly, Travelers offers a 5% discount for homes with LEED certification and optional green home coverage, which provides additional funds to rebuild or repair your home with green building materials. American Family also offers discounts for using smart devices that improve energy efficiency, such as smart thermostats, lights, or outlets.
In addition to insurance discounts, the federal government offers tax credits that can cover 30% to 100% of the costs of installing energy-efficient appliances. These incentives make it easier and more affordable for homeowners to adopt eco-friendly practices and reduce their environmental impact.
To maximize your savings, it is important to review your insurance policy and stay up to date with the latest discounts offered by your provider. Comparison shopping and reviewing quotes from multiple insurance companies can also help identify the best rates and discounts for your eco-friendly home.
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Coverage for high-risk homes
Homeowners insurance is not a legal requirement in the U.S., unlike car insurance. However, it provides vital financial support in the event of damage or theft, and is well worth having if you own property.
There are many reasons why a homeowner or their property might be considered high-risk. These include the location of the property, the likelihood of claims being filed, the homeowner's credit score, and the condition of the property. For instance, homes in areas that suffer from natural disasters like hurricanes, floods, and wildfires are considered high-risk. Similarly, if your home is in an area with a high crime rate, or you have a dog breed that is considered aggressive, you may be deemed high-risk.
If your home is vacant, run-down, or has a history of insurance claims, you may struggle to get insurance. However, there are specialist providers that cater to high-risk properties and homeowners. Foremost, for example, is part of the Farmers Insurance Group and covers vacant homes, older properties, and those with hefty claims histories. American Family Insurance also offers coverage for vacant homes, as well as for sump pump and water backup, roof damage, equipment breakdown, and inland flooding.
Chubb's Masterpiece policy is aimed at higher-value homes and includes extended replacement cost coverage for your property and its contents, as well as personal liability coverage and identity theft protection.
If you are unable to get insurance through the voluntary market, you may be eligible for a FAIR (Fair Access to Insurance Requirements) Plan or surplus line insurance. These policies tend to be more expensive and offer more limited coverage, but they are designed to provide coverage when traditional insurers do not accept applications.
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How to save on homeowners insurance
Homeowners insurance is not a legal requirement in the U.S., but it provides vital financial support in the event of damage or theft. The price you pay for your homeowners insurance can vary by hundreds of dollars depending on the insurance company and the state you live in. Here are some ways to save on homeowners insurance:
Shop around
Ask your friends, check the Yellow Pages, or contact your state insurance department. The National Association of Insurance Commissioners (NAIC) has information to help you choose an insurer in your state, including complaints and typical rates charged by major insurers. Check consumer guides, insurance agents, companies, and online insurance quote services to get an idea of price ranges and which companies have the lowest prices.
Raise your deductible
The deductible is the amount of money you have to pay toward a loss before your insurance company starts to pay a claim. The higher your deductible, the more money you can save on your premiums. If you can afford to raise your deductible to $1,000, you may save as much as 25%. Remember that if you live in a disaster-prone area, your insurance policy may have a separate deductible for certain kinds of damage.
Bundle your policies
If you need multiple types of insurance, such as home and auto, consider getting them from the same company. Many companies offer "multi-policy discounts" of 5 to 15% if you buy two or more policies from them. Make sure that the combined price is lower than buying the different coverages from different companies.
Improve your home security
Upgrading your home's security can lower your insurance costs. Installing a security system and smart home devices could save you money on home insurance. Check with your insurer to see which home improvements qualify for discounts.
Take advantage of discounts
You can usually get discounts of at least 5% for a smoke detector, burglar alarm, or deadbolt locks. If you're retired, you may qualify for a discount of up to 10% at some companies. Check with your employer or any groups you belong to, as they may have group insurance programs that offer better rates.
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Cheapest home insurance companies by state
The cheapest home insurance company for you will depend on a variety of factors, including your location, credit score, and the value of your home.
USAA is consistently ranked as one of the cheapest home insurance companies in the US, offering special discounts to military members. However, USAA insurance is only available to members of the military community. Amica is another company that offers highly affordable rates, with an average monthly premium of $146.20 for $300,000 dwelling and $100,000 liability coverage.
For those with poor credit, Travelers, Progressive, and USAA are the cheapest large insurance companies. Progressive and Auto-Owners are the cheapest options for homeowners with a claims history.
In Georgia, Auto-Owners and Progressive offer the cheapest rates. Auto-Owners has the cheapest quotes in Atlanta, with a policy of $350,000 of dwelling coverage for $1,361 per year. Progressive offers the cheapest rates for homes with $200,000 of dwelling coverage, at $972 per year.
To save money on home insurance, consider bundling your home and auto insurance, improving your credit score, and installing safety features in your home, such as fire extinguishers, deadbolts, and security systems.
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Frequently asked questions
Some of the cheapest homeowners insurance companies in the US include USAA, Auto-Owners, American Family, Nationwide, Erie, and Allstate. In Georgia, Auto-Owners and Progressive are known to have the cheapest rates. In California, Mercury Insurance is a good option for cheap homeowners insurance. In the UK, you can use price comparison websites such as Confused.com, Compare the Market, Go.Compare, and MoneySuperMarket to find the cheapest insurance.
The cost of homeowners insurance depends on factors such as the age and condition of the home, the replacement cost, the location, and the credit history of the homeowner. Older homes with outdated systems tend to be more expensive to insure due to the higher risk of structural issues. The location of the home can also impact the cost, with homes in areas prone to natural disasters or high crime rates having higher insurance rates. Additionally, a poor credit history may result in higher premiums.
To find the cheapest homeowners insurance, it is recommended to shop around and obtain quotes from multiple insurers. Compare the prices and coverage options offered by different companies to determine the best value for your needs. Price comparison websites can be a helpful starting point, but not all providers appear on these sites, so consider contacting insurers directly. Additionally, consider factors such as discounts, customer service reviews, and the company's claims history.
The average cost of homeowners insurance can vary depending on location and other factors. In the US, the average cost is around $2,151 per year. In California specifically, the average cost is approximately $1,383 per year, while in Georgia, it is about $2,217 per year. In the UK, the average cost of a combined home insurance policy was £391 between April and June 2025.
